Import scrap prices for India have continued to seek higher levels largely driven by freight costs, though the trading environment has been muted ahead of the festival holidays later this week, while local heavy melting scrap has available almost at similar levels, SteelOrbis learned from trade and industry circles on Wednesday, November 3.
The containerized shredded scrap price has been quoted in the range of $558-562/mt CFR Nhava Sheva port in the west, up from $558-560/mt CFR a week ago.
According to trade circles, local heavy melting scrap prices have remained at a 10-year peak of INR 41,000- 42,000/mt ($549-562/mt) ex-Mandi Govindgarh and, despite the high price it is still preferred by secondary mills because of the high freight component in the landed price of imports and the uncertain delivery situation due to the shortage of containers held by shipping lines.
“Generally, Indian secondary induction furnace operators are not keen buyers. Mills are operating at lower levels owing to the continued energy crisis and workers’ holidays,” an eastern India-based mill operator said.
“Also, the earliest delivery commitment is available for end of January and February and the volatility of the local currency against the US dollar has increased the risks for imports,” he said.
A secondary mill based in Raipur in central India has reported a trade for ex-US shredded scrap at $558-560/mt CFR for January delivery.
A deal for February delivery was heard in the market done by a Gujarat-based ferrous and non-ferrous scrap trading firm at around $562/mt CFR Kandla port in the west.
$1 =INR 74.70